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Title: Correction? Post by: tuzo on March 03, 2007, 11:02:33 PM Pretty wild week. Anyone have any opinions on the market going forward?
Is the same the same setup as last May? If it is, that's pretty scary for the SSP portfolios -- I think v4 lost around 40% at that time. I know the results over the longer term have been outstanding but a 40% drop is quite frightening -- especially if you are not sitting on a 600+% gain like the portfolio is. Title: Re: Correction? Post by: burd on March 05, 2007, 12:33:08 AM Hey Tuzo,
Another 40% or more correction is quite possible to happen again and would be quite scary. I am still unsure how the ssp system will work in a down trend because we have been in a bull market for 4 years now. I started using the ssp about 6 months ago with the V4. Because of the risk and volatility I only have about 20-30% of my portfolio in high risk stock like the ssp stock picks. That way a 50% drop in the V4 would only be about 12-15% drop in my portfolio. another way to protect yourself is using a stop loss on the stocks you buy so you don't loose over a certain amount. I may only put half the amount of money into the SSP stocks until I see what happens. So far the SSP has been very impressive, hopefully it can continue with more gains in the future. Burd Title: Re: Correction? Post by: tuzo on March 06, 2007, 12:23:33 AM I think the data is not currently available (correct me if I'm wrong) but performing a back test in different market conditions would be a valuable exercise.
The "problem" with most of the SSP stocks is that they tend to be very volatile. Of course this can lead to huge gains but also large losses. |